Momondo Group reports strong first quarter

The Momondo Group has reported 29% year-on-year growth across its brands for the first quarter of 2014.

The Momondo Group has reported 29% year-on-year growth across its brands for the first quarter of 2014.

The flight search company said the revenue boost was driven by a 116% year-on-year increase in international meta search revenues and investment in travel product innovation.

Total revenues reached £14.5 million, with earnings before interest, taxes, depreciation and amortisation (EBITDA) up 32% to £3.2 million.

The London-based group said its international business (markets outside the UK) accounted for 84% of revenues – up from 74% on the same period last year.

In the last 12 months Momondo has launched a number of apps, mobile services and country-specific sites in Europe and Asia-Pacific.

It also claimed web traffic across its portfolio reached more than 19 million visitors per month.

Chief executive Hugo Burge said: “2013 was a tipping point for the group and the strong numbers for the first quarter of this year reflect our focus on investing for long-term growth.

“Consistent with this, our Momondo unit has shown triple-digit growth year on year – with our established Cheapflights business continuing to deliver impressive returns.

“We will build on this strong first quarter by continuing to develop genuinely insightful, innovative travel search tools that deliver clear consumer benefits – as well as investing heavily in international growth.

“We’re looking forward to revealing further innovative eye-opening products this year and expanding into new markets; sharing our expertise to help people find cheap flights and best-fit travel options.”

Chief financial officer Alan Martin added: “We have spent the last two years investing in and building our Momondo unit; this is now bearing fruit in both product and revenue terms, with successful diversification into new areas such as hotels.

“Strong cash generation has allowed us to support this investment at the same time as paying down our debt.”

“The results herald the next phase of our growth strategy as we look to further build market share in Europe, Asia and further afield. This is a dynamic business, built on innovation – but we operate in a fast-moving sector and remain committed to driving expansion, investing for growth in 2014 and beyond.”

To support its continued growth the company said it had already expanded its headcount by 34% over the past year from 150 to 200 across its main operations in London, Copenhagen and Boston.

The group said it expected at least a double-digit percentage increase in headcount in the areas of marketing and software development in the coming year to support the roll out of new products and services and underpin continued growth.